Alternative Routes to Monoethylene Glycol (MEG) April 2013 Report Contents

Alternative Routes to
Monoethylene Glycol (MEG)
Table of Contents
A Report by Nexant’s CHEMSYSTEMS
Process Evaluation/Research Planning (PERP) Program
PERP Report 2012S10– Published April 2013
www.chemsystems.com

Section Page

1 Executive Summary ................................................................................................. 1

1.1 BUSINESS OVERVIEW .............................................................................. 1
1.2 TECHNOLOGY LICENSING STATUS ...................................................... 5
1.2.1 Petroleum Derived Ethylene to MEG ................................................ 5
1.2.2 Coal-Based Routes ............................................................................. 5
1.2.3 Biomass-Based Routes....................................................................... 6
1.3 PROCESS ECONOMICS .............................................................................. 8
1.3.1 Summary of Scenarios Presented....................................................... 8
1.3.2 Comparison of Scenarios ................................................................... 10
1.4 CONCLUDING REMARKS ......................................................................... 12
1.5 GLOBAL MEG SUPPLY/DEMAND BALANCE ....................................... 13
2 Introduction .............................................................................................................. 15
2.1 TECHNOLOGY OVERVIEW ...................................................................... 15
2.2 BUSINESS DEVELOPMENTS .................................................................... 17
2.3 TECHNOLOGY LICENSING STATUS ...................................................... 18
2.3.1 Petroleum Derived Ethylene to MEG ................................................ 18
2.3.2 Coal-Based Routes ............................................................................. 18
2.3.3 Biomass-Based Routes....................................................................... 20
2.4 STRATEGIC AND BUSINESS CONSIDERATIONS ................................ 21

CHEMSYSTEMS PERP PROGRAM 1

www.chemsystems.com PERP REPORT 2012S10, Alternative Routes to Monoethylene Glycol (MEG)
A00101.0012.4118
Alternative Routes to Monoethylene Glycol (MEG) April 2013 Report Contents

2.5 PHYSICAL AND THERMODYNAMIC PROPERTIES ............................. 23

2.6 SPECIFICATIONS ........................................................................................ 23
2.7 HEALTH HAZARDS .................................................................................... 24
2.8 STORAGE AND TRANSPORTATION ....................................................... 24
3 MEG from Petrochemicals...................................................................................... 25
3.1 ETHYLENE PRODUCTION VIA STEAM CRACKING ........................... 25
3.2 ETHYLENE TO ETHYLENE OXIDE ......................................................... 26
3.3 ETHYLENE OXIDE TO MONOETHYLENE GLYCOL............................ 29
3.3.1 Dow Process....................................................................................... 29
3.3.2 Scientific Design ................................................................................ 31
3.3.3 SHELL MASTER Process ................................................................. 33
3.3.4 SHELL OMEGA Process .................................................................. 34
3.4 ALTERNATIVE PETROCHEMICAL ROUTES TO MEG ........................ 37
4 Coal to MEG ............................................................................................................. 39
4.1 OVERVIEW .................................................................................................. 39
4.2 COAL TO MEG VIA DIMETHYL OXALATE........................................... 40
4.2.1 Background ........................................................................................ 40
4.2.2 Coal Gasification ............................................................................... 42
4.2.3 CO to Dimethyl Oxalate .................................................................... 57
4.2.4 Dimethyl Oxalate to MEG ................................................................. 61
4.2.5 Coal-to-MEG as an Integrated Complex ........................................... 62
4.2.6 Fujian Institute of Research on the Structure of Matter (FJIRSM) ... 63
4.2.7 Haiso Technology .............................................................................. 65
4.2.8 Shanghai Huayi .................................................................................. 67
4.2.9 Ube Industries .................................................................................... 67
4.3 COAL TO MEG VIA METHANOL ............................................................. 69
4.3.1 Background ........................................................................................ 69
4.3.2 Methanol-to-Olefins (MTO) .............................................................. 70
5 Biomass to MEG ...................................................................................................... 80
5.1 FERMENTATION OF BIOMASS TO ETHANOL ..................................... 80
5.1.1 Background ........................................................................................ 80

CHEMSYSTEMS PERP PROGRAM 2

www.chemsystems.com PERP REPORT 2012S10, Alternative Routes to Monoethylene Glycol (MEG)
A00101.0012.4118
Alternative Routes to Monoethylene Glycol (MEG) April 2013 Report Contents

5.1.2 Bioethanol to Ethylene ....................................................................... 81

5.2 BIOMASS GASIFICATION ......................................................................... 88
5.2.1 Overview ............................................................................................ 88
5.2.2 CHOREN Carbo-V – Staged Gasification ......................................... 88
5.2.3 BCT – Steam Reforming Gasification ............................................... 90
5.2.4 PEARSON Technologies Inc. ............................................................ 91
5.2.5 Other Biomass Gasification Technologies......................................... 91
5.2.6 Biomass Feedstock Considerations.................................................... 92
5.3 BIOMASS TO MEG VIA DIMETHYL OXALATE .................................... 93
5.3.1 Overview ............................................................................................ 93
5.3.2 Biomass to MEG as an Integrated Complex ...................................... 93
5.3.3 Mass Balance for Biomass to MEG Process...................................... 94
5.4 SUGAR TO GLYCOLS ................................................................................ 94
5.4.1 Background ........................................................................................ 94
5.4.2 Commercial Processes ....................................................................... 95
5.4.3 Direct Conversion of Cellulose to MEG ............................................ 97
6 Process Economics ................................................................................................... 98
6.1 COSTING BASIS .......................................................................................... 98
6.1.1 Investment Basis ................................................................................ 98
6.1.2 Pricing Basis ...................................................................................... 98
6.1.3 Cost of Production Basis .................................................................... 100
6.2 COST OF PRODUCING MONOETHYLENE GLYCOL VIA THE
ETHYLENE HYDRATION PROCESS (ETHYLENE AT MARKET
PRICE) ........................................................................................................... 101
6.2.1 Benchmark Region Cost of Production Estimate .............................. 101
6.2.2 Regional Cost of Production Comparison (China, North-West
Europe, and USGC) ........................................................................... 103
6.3 COST OF PRODUCING MONOETHYLENE GLYCOL VIA THE
ETHYLENE HYDRATION PROCESS (ETHYLENE FROM ETHANE) .. 104
6.3.1 Benchmark Region Cost of Production Estimate .............................. 104
6.3.2 Regional Cost of Production Comparison (USGC and Saudi
Arabia) ............................................................................................... 106

CHEMSYSTEMS PERP PROGRAM 3

www.chemsystems.com PERP REPORT 2012S10, Alternative Routes to Monoethylene Glycol (MEG)
A00101.0012.4118
Alternative Routes to Monoethylene Glycol (MEG) April 2013 Report Contents

6.4 COST OF PRODUCING MONOETHYLENE GLYCOL VIA THE

ETHYLENE HYDRATION PROCESS (ETHYLENE FROM LIGHT
VIRGIN NAPHTHA) .................................................................................... 107
6.4.1 Benchmark Region Cost of Production Estimate .............................. 107
6.5 COST OF PRODUCING MONOETHYLENE GLYCOL VIA THE
ETHYLENE HYDRATION PROCESS (ETHYLENE FROM
METHANOL TO OLEFINS) ........................................................................ 109
6.5.1 Benchmark Region Cost of Production Estimate .............................. 109
6.5.2 Regional Cost of Production Comparison (USGC and China) .......... 111
6.6 COST OF PRODUCING MONOETHYLENE GLYCOL VIA THE
ETHYLENE HYDRATION PROCESS (ETHYLENE FROM
BIOETHANOL) ............................................................................................ 112
6.6.1 Benchmark Region Cost of Production Estimate .............................. 112
6.7 COMPARISON OF ETHYLENE OXIDATION/HYDRATION
COMMERCIAL PROCESSES FOR PRODUCING MEG .......................... 114
6.8 COST OF PRODUCING MONOETHYLENE GLYCOL FROM
SYNGAS VIA DIMETHYL OXALATE (COAL BASED SYNGAS) ........ 116
6.8.1 Benchmark Region Cost of Production Estimate .............................. 116
6.8.2 Regional Cost of Production Comparison (China, North-West
Europe, and USGC) ........................................................................... 118
6.9 SPECULATIVE COST OF PRODUCING MONOETHYLENE
GLYCOL FROM SYNGAS VIA DIMETHYL OXALATE (SYNGAS
FROM NATURAL GAS) .............................................................................. 119
6.9.1 Benchmark Region Cost of Production Estimate .............................. 119
6.10 SPECULATIVE COST OF PRODUCING MONOETHYLENE
GLYCOL FROM SYNGAS VIA DIMETHYL OXALATE (SYNGAS
FROM BIOMASS) ........................................................................................ 121
6.10.1 Benchmark Region Cost of Production Estimate .............................. 122
6.11 COMPARISON OF PROCESSES FOR PRODUCING MEG FROM
SYNGAS VIA DMO ..................................................................................... 124
6.12 COMPARISON OF CONVENTIONAL AND ALTERNATIVE
ROUTES FOR PRODUCING MEG ............................................................. 126
6.12.1 Summary of Scenarios Presented....................................................... 126
6.12.2 Comparison of Scenarios ................................................................... 127
6.13 CONCLUDING REMARKS ......................................................................... 129
7 Commercial Applications ........................................................................................ 130

CHEMSYSTEMS PERP PROGRAM 4

www.chemsystems.com PERP REPORT 2012S10, Alternative Routes to Monoethylene Glycol (MEG)
A00101.0012.4118
Alternative Routes to Monoethylene Glycol (MEG) April 2013 Report Contents

7.1 END USE ANALYSIS .................................................................................. 130

7.1.1 Overview ............................................................................................ 130
7.1.2 Polyethylene Terephthalate (PET) ..................................................... 130
8 Regional Market Analysis ....................................................................................... 135
8.1 GLOBAL ....................................................................................................... 135
8.1.1 Consumption ...................................................................................... 135
8.1.2 Supply ................................................................................................ 137
8.1.3 Supply, Demand, and Trade............................................................... 140
8.2 NORTH AMERICA ...................................................................................... 142
8.2.1 Consumption ...................................................................................... 142
8.2.2 Supply ................................................................................................ 143
8.2.3 Supply, Demand, and Trade............................................................... 144
8.3 WESTERN EUROPE .................................................................................... 146
8.3.1 Consumption ...................................................................................... 146
8.3.2 Supply ................................................................................................ 147
8.3.3 Supply, Demand, and Trade............................................................... 148
8.4 ASIA PACIFIC .............................................................................................. 149
8.4.1 Overview ............................................................................................ 149
8.4.2 Consumption ...................................................................................... 149
8.4.3 Supply ................................................................................................ 151
8.4.4 Supply, Demand, and Trade............................................................... 155
9 Glossary .................................................................................................................... 157
10 References ................................................................................................................. 159

Appendix Page

A Definitions of Capital Cost Terms Used in Process Economics ........................... A-1

B Definitions of Operating Cost Terms Used in Process Economics ...................... B-1
C Supporting Cost of Production Estimates ............................................................. C-1
D PERP Program Title Index (2003 - 2012) .............................................................. D-1

CHEMSYSTEMS PERP PROGRAM 5

www.chemsystems.com PERP REPORT 2012S10, Alternative Routes to Monoethylene Glycol (MEG)
A00101.0012.4118
Alternative Routes to Monoethylene Glycol (MEG) April 2013 Report Contents

Figure Page

1.1 Monoethylene Glycol (MEG) Value Chain ............................................................... 1

1.2 Global MEG Demand, 2012 ...................................................................................... 2
1.3 Regional Ethylene Net Exports/Imports .................................................................... 3
1.4 Summary of the Cost of Producing MEG by Conventional and Alternative
Routes ........................................................................................................................ 10
1.5 Global MEG Supply, Demand, and Trade ................................................................. 13
1.6 Global MEG Trade by Region ................................................................................... 14
2.1 Monoethylene Glycol (MEG) Value Chain ............................................................... 15
2.2 New and Existing Route to MEG .............................................................................. 16
2.3 Regional Ethylene Net Exports/Imports .................................................................... 21
3.1 Dow METEOR Glycol Reaction and Evaporation System .................................. 30
3.2 Glycol Reaction and Separation via SD Process ...................................................... 32
3.3 Shell OMEGA Process .............................................................................................. 35
3.4 Shell OMEGA Ethylene Glycol Section.................................................................... 36
3.5 Natural Gas to MEG Process ..................................................................................... 38
4.1 Three Major Chemical Steps in Coal-to-MEG .......................................................... 40
4.2 Simplified Process Diagram for MEG from CO....................................................... 41
4.3 Major Gasification Reactions .................................................................................... 43
4.4 ChevronTexaco Gasifier ............................................................................................ 47
4.5 ConocoPhillips E-Gas Gasifier .................................................................................. 48
4.6 Shell Gasification Process.......................................................................................... 50
4.7 Dimethyl Oxalate Synthesis Reaction Mechanism .................................................... 58
4.8 Coal-to-MEG ............................................................................................................. 60
4.9 Integrated Coal-to-MEG Complex ............................................................................ 63
4.10 Haiso Technology Coal -to-MEG .............................................................................. 66
4.11 Ube Industries Technology Coal-to-MEG ................................................................ 68
4.12 UOP/HYDRO MTO Process: Simplified Flow Diagram ......................................... 72
4.13 ExxonMobil MTO U.S. Patents, 1976-2009 ............................................................. 75
4.14 Conceptual ExxonMobil MTO Flow Diagram ......................................................... 78
5.1 Block Flow Diagram for Ethanol Production from Cane Juice or Molasses ............. 81

CHEMSYSTEMS PERP PROGRAM 6

www.chemsystems.com PERP REPORT 2012S10, Alternative Routes to Monoethylene Glycol (MEG)
A00101.0012.4118
Alternative Routes to Monoethylene Glycol (MEG) April 2013 Report Contents

5.2 Bio-Ethanol to Green Ethylene: Conceptual Process Flow ....................................... 82

5.3 Braskem Ethanol Dehydration Process ..................................................................... 83
5.4 Ethylene from Ethanol (Chematur Route) ................................................................ 85
5.5 Ethylene from Ethanol - Lummus Fluid-Bed Process .............................................. 87
5.6 Process Schematic - CHOREN Syngas Production from Biomass ........................... 89
5.7 Biomass to MEG Process........................................................................................... 93
5.8 Simplified Mass Balance for Straw to MEG ............................................................. 94
6.1 Summary of the Cost of Producing MEG via the Conventional Route (Third
Quarter, 2012) ............................................................................................................ 115
6.2 Summary of the Cost of Producing MEG via the Alternative Route ........................ 125
6.3 Summary of the Cost of Producing MEG by Conventional and Alternative
Routes ........................................................................................................................ 127
7.1 MEG Value Chain...................................................................................................... 130
7.2 Consumption of PET Melt Phase by Application ...................................................... 133
8.1 Global MEG Demand, 2012 ...................................................................................... 135
8.2 Global MEG Consumption ........................................................................................ 136
8.3 Global GDP Growth versus MEG Consumption Growth.......................................... 137
8.4 Global MEG Capacity Share by Market in 2012 ....................................................... 138
8.5 Global MEG Capacity Additions ............................................................................... 139
8.6 Global MEG Capacity by Region .............................................................................. 139
8.7 Global MEG Supply, Demand, and Trade ................................................................. 140
8.8 Global MEG Trade by Region ................................................................................... 141
8.9 North America MEG Consumption, 2012 ................................................................. 142
8.10 North America MEG Supply, Demand, and Trade.................................................... 145
8.11 West European MEG Consumption, 2012................................................................. 146
8.12 West European MEG Supply, Demand, and Trade ................................................... 148
8.13 Asia Pacific MEG Consumption, 2012...................................................................... 150
8.14 Asia Pacific MEG Supply, Demand, and Trade ........................................................ 156

CHEMSYSTEMS PERP PROGRAM 7

www.chemsystems.com PERP REPORT 2012S10, Alternative Routes to Monoethylene Glycol (MEG)
A00101.0012.4118
Alternative Routes to Monoethylene Glycol (MEG) April 2013 Report Contents

Table Page

1.1 Licensors and Technology Holders of Petroleum-Derived Ethylene to MEG .......... 5

1.2 Coal to MEG Plants and Processes ............................................................................ 7
1.3 Licensors and Other Technology Holders of Biomass-based Routes to MEG .......... 8
1.4 Summary of Process Economics for Conventional and Alternative Routes to
MEG........................................................................................................................... 9
1.5 Global MEG Supply, Demand, and Trade ................................................................. 14
2.1 Licensors and Technology Holders of Petroleum-Derived Ethylene to MEG .......... 18
2.2 Coal to MEG Plants and Processes ............................................................................ 19
2.3 Licensors and Technology Holders of Biomass-Based Routes to MEG ................... 20
2.4 MEG Key Physical and Thermodynamic Properties ................................................. 23
2.5 MEG Commercial Specification ................................................................................ 24
4.1 Gasifier Technology Suppliers .................................................................................. 46
4.2 Salient Characteristics of Major Gasification Technologies ..................................... 52
4.3 Entrained Coal Gasification Processes – Syngas Compositions................................ 53
4.4 Fluid and Moving Bed Coal Gasification Processes – Syngas Compositions ........... 53
4.5 Component Yield from UOP/HYDRO MTO Process ............................................... 73
4.6 UOP/HYDRO MTO Flexibility................................................................................. 73
4.7 SAPO-34 Selectivity Regeneration Scheme .............................................................. 76
4.8 Product Selectivity ..................................................................................................... 77
5.1 S2G Biochem Product Slate....................................................................................... 96
6.1 Prices of Raw Materials, Products, Utilities and Labor ............................................. 99
6.2 Cost of Production Estimate for: Monoethylene Glycol (MEG)
Process: Ethylene Oxidation/Hydration; United States Gulf Coast Basis ................. 102
6.3 Summary of Regional Economics for MEG Produced via Ethylene
Oxidation/Hydration (With Ethylene at Market Price) .............................................. 103
6.4 Cost of Production Estimate for: Monoethylene Glycol (MEG)
Process: Ethylene Oxidation/Hydration; Ethylene via Steam Cracking of Ethane,
United States Gulf Coast Basis .................................................................................. 105
6.5 Summary of Regional Economics for MEG Produced via Ethylene
Oxidation/Hydration (With Ethylene from Ethane) .................................................. 106

CHEMSYSTEMS PERP PROGRAM 8

www.chemsystems.com PERP REPORT 2012S10, Alternative Routes to Monoethylene Glycol (MEG)
A00101.0012.4118
Alternative Routes to Monoethylene Glycol (MEG) April 2013 Report Contents

6.6 Cost of Production Estimate for: Monoethylene Glycol (MEG)

Process: Ethylene Oxidation/Hydration; Ethylene via Steam Cracking of Light
Virgin Naphtha, United States Gulf Coast Basis ....................................................... 108
6.7 Cost of Production Estimate for: Monoethylene Glycol (MEG)
Process: Ethylene Oxidation/Hydration; Ethylene via Methanol to Olefins
(MTO), United States Gulf Coast Basis ................................................................... 110
6.8 Summary of Regional Economics for MEG Produced via Ethylene
Oxidation/Hydration (With Ethylene from Methanol to Olefins - MTO) ................. 111
6.9 Cost of Production Estimate for: Monoethylene Glycol (MEG)
Process: Ethylene Oxidation/Hydration; Ethylene via Bioethanol Dehydration),
United States Gulf Coast Basis .................................................................................. 113
6.10 Summary of Process Economics for Ethylene Oxidation/Hydration ........................ 115
6.11 Cost of Production Estimate for: Monoethylene Glycol (MEG)
Process: Coal-Based Syngas Conversion via DMO;
United States Gulf Coast Basis .................................................................................. 117
6.12 Summary of Regional Economics for MEG Produced via DMO via the CTMEG
Route .......................................................................................................................... 119
6.13 Cost of Production Estimate for: Monoethylene Glycol (MEG)
Process: Natural Gas Based Syngas Conversion via DMO;
United States Gulf Coast Basis .................................................................................. 120
6.14 Cost of Production Estimate for: Monoethylene Glycol (MEG)
Process: Biomass Based Syngas Conversion via DMO;
United States Gulf Coast Basis .................................................................................. 123
6.15 Summary of Process Economics for Alternative Routes to MEG ............................. 125
6.16 Summary of Process Economics for Conventional and Alternative Routes to
MEG........................................................................................................................... 126
7.1 Applications of Polyethylene Terephthalate (PET) ................................................... 134
8.1 Global MEG Consumption by Region ....................................................................... 136
8.2 Global MEG Consumption by End-Use .................................................................... 137
8.3 Global MEG Supply, Demand, and Trade ................................................................. 141
8.4 North America MEG Consumption by Region ......................................................... 143
8.5 North America MEG Consumption ........................................................................... 143
8.6 Capacities for MEG in North America ...................................................................... 144
8.7 North America MEG Supply, Demand, and Trade.................................................... 145
8.8 West European MEG Consumption........................................................................... 146
8.9 Capacities for MEG in Western Europe .................................................................... 147

CHEMSYSTEMS PERP PROGRAM 9

www.chemsystems.com PERP REPORT 2012S10, Alternative Routes to Monoethylene Glycol (MEG)
A00101.0012.4118
Alternative Routes to Monoethylene Glycol (MEG) April 2013 Report Contents

8.10 West European MEG Supply, Demand, and Trade ................................................... 149
8.11 Asia Pacific MEG Consumption by Region .............................................................. 150
8.12 Asia Pacific MEG Consumption by End-Use ............................................................ 151
8.13 Capacities for MEG in Asia Pacific ........................................................................... 153
8.14 Asia Pacific MEG Supply, Demand, and Trade ........................................................ 156

CHEMSYSTEMS PERP PROGRAM 10

www.chemsystems.com PERP REPORT 2012S10, Alternative Routes to Monoethylene Glycol (MEG)
A00101.0012.4118
Alternative Routes to Monoethylene Glycol (MEG) April 2013 Report Contents

CHEMSYSTEMS
PERP PROGRAM

www.chemsystems.com

The ChemSystems Process Evaluation/Research Planning (PERP) program is

recognized globally as the industry standard source for information relevant to
the chemical process and refining industries. PERP reports are available as a
subscription program or on a single report basis.

Contact Details:

London: Dr. Alexander Coker, Manager, PERP Program

Phone: + 44-(20)-7950-1570, e-mail: acoker@nexant.com

New York: Heidi Junker Coleman, Global Programs Support Manager

Phone: + 1-914-609-0381, e-mail: hcoleman@nexant.com

Shanghai: Dr. Y. Larry Song, General Manager, Nexant China

Phone: +86 21 6182 6791, e-mail: ylsong@nexant.com
Nexant, Inc. (www.nexant.com) is a leading management consultancy to the global energy, chemical, and related industries. For over 38 years,
ChemSystems has helped clients increase business value through assistance in all aspects of business strategy, including business intelligence, project
feasibility and implementation, operational improvement, portfolio planning, and growth through M&A activities. Nexant has its main offices in
San Francisco (California), White Plains (New York), and London (UK), and satellite offices worldwide.

Copyright © by Nexant Inc. 2013. All Rights Reserved.

CHEMSYSTEMS PERP PROGRAM 11

www.chemsystems.com PERP REPORT 2012S10, Alternative Routes to Monoethylene Glycol (MEG)
A00101.0012.4118